U.S. stocks fall as Goldman, financials drop; Dow Jones sheds 0.03%

Forex Pros – U.S. stocks were down after the open on Wednesday, as disappointing earnings results from Goldman Sachs dragged down shares in the financial sector, offsetting gains made in the technology sector. 

During early U.S. trade, the Dow Jones Industrial Average shed 0.03%, the S&P 500 index was down 0.30%, while the Nasdaq Composite index slumped 0.15%.

Shares in global financial service provider Goldman Sachs tumbled 2.92% after it said that fourth quarter net income fell by 52% to USD2.39 billion, compared to USD4.95 billion a year earlier as revenue from trading and investment bank declined.

Shares in the fourth largest U.S. bank Wells Fargo shed 0.84% after it said that revenue in the fourth quarter declined to USD21.5 billion, compared to USD22.7 billion a year earlier. 

Elsewhere, shares in the largest U.S. lender Bank of America slumped 1.40%, rival Morgan Stanley saw shares fall 1.88%, while shares in U.S. Bancorp declined 1.87%.

Meanwhile, shares in the largest global credit card issuer American Express tumbled 3.39% after it said that it was cutting 550 jobs as part of a decision to consolidate locations within the company's global servicing network.

However, shares in consumer electronics giant Apple jumped 1.30% after it reported that earnings in the fiscal first quarter jumped by 43% to USD6 billion, compared to USD 3.38 billion a year earlier. Revenue in the quarter soared by 70% to USD26.74 billion as strong holiday sales of the iPhone and iPad drove the company's results for the period.

Meanwhile, shares in the world's biggest provider of computer services International Business Machines rallied 3.09% after it reported fourth quarter rose to USD5.3 billion, compared to USD4.8 billion a year earlier. Fourth quarter revenue rose to USD29 billion, beating analysts' expectations for revenue of USD28.2 billion.

Also Wednesday, shares in U.S. Steel Corporation dropped 2.46% after the stock was downgraded to ‘hold' by Deutsche Bank.

Meanwhile, U.S. listed shares of the world's largest book publisher Pearson soared 5.51% after it lifted its full-year earnings outlook, saying it now expected to report a profit of approximately USD1.14 billion in 2010, up 20% from a year earlier.

Across the Atlantic, European stock markets were down. The EURO STOXX 50 fell 0.19%, France's CAC 40 slid 0.32%, Germany's DAX shed 0.36%, while Britain's FTSE 100 dropped 0.37%.

Earlier in the day, official data showed that U.S. building permits rose more-than-expected in December, while housing starts declined unexpectedly, falling to the lowest level since October 2009.

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